Counties agree to help move Foustwell Tunnel project forward in 2023

As the Cambria Somerset Authority board awaits word on additional funding for work on the Foustwell Tunnel section of the Quemahoning pipeline, officials from both Somerset and Cambria counties have pledged the financial support needed to move the project forward next year.

Funding:How the Cambria Somerset Authority is trying to make do with less from the counties

In July, the authority announced that it had received a $917,000 grant from the federal Economic Development Administration, aka EDA, and the Appalachian Regional Commission, aka ARC, to upgrade the Foustwell Tunnel section, which is located between Hollsopple and Seanor.

This 2,300-foot section of the century-old pipeline, which transports industrial water from the Quemahoning Reservoir to business and municipal customers in Somerset and Cambria counties, has broken numerous times in recent years and caused water supply issues for those customers. The authority plans to insert a new 48-inch wide pipe inside the original 66-inch line to prevent any additional interruptions of service.

Grants:Cambria Somerset Authority gets $900K grant for Foustwell work, as project costs increase

Where will the funding come from?

The authority has about $1.5 million committed to the project through the federal grant, a total of $460,000 in funding already pledged by Somerset and Cambria counties and $188,000 of the authority’s own funds.

However, the original project estimate of $1.5 million has risen to approximately $2 million in the past year, due mainly to a sharp increase in the cost of the pipe itself.

Part of the remaining $500,000 deficit may be covered by an additional $300,000 grant application that the authority has submitted to the ARC, said Somerset County Commissioner Colleen Dawson, the county’s representative to the Cambria Somerset Authority board. The decision on that funding is to be announced by the end of December.

Blighted building in Somerset to come down

Whether the additional funding from ARC is approved or not, the two counties will equally make up the difference so the slip line project can proceed next year, Dawson said in an interview conducted Thursday evening after the board’s December meeting.

“By the two counties pledging (additional funds), that lets the ARC know that we are committed to this project moving forward,” she said. “Any additional funding from ARC will decrease the amount that the counties have to contribute.”

The authority may also apply for a new PennVEST loan to cover the balance, since their two current loans will be paid off next year. One of the loans will be paid off as of Jan. 1 and the other is to be paid off in August. The two counties contribute an annual grant amount to the authority to help pay off the loans.

“The counties are still basically on the hook for the additional money; either we pledge the total amount or (the authority) gets a PennVEST loan and that reduces our pledge,” she said. “We don’t have to wait and see if they get a PennVEST loan, because the counties will pay to move the project forward.

“It is important that we reduce the general fund hit for the counties as much as we can, in all respects.”

Fixing the Foustwell Tunnel is also too important a project to delay any further, especially since federal grant money has been approved for the work, Dawson said.

“We have been making repairs to the Foustwell Tunnel many times over the last five years, and if there’s a leak in certain sections of the tunnel, it would be hard to get to those certain sections to make repairs. So, the proposed slip line for the entire tunnel is appropriate,” she said.

“The pipeline is aging, so it’s important we keep up the maintenance on it. This way, we’re being proactive instead of being reactive, and we’re fixing it prior to any catastrophic leak. You have to take care of them (the authority’s reservoirs), but the benefits we get, you can’t put a price on it.”

Loan amounts set for 2023

At the December meeting, the authority also approved its loan agreements with both Somerset and Cambria counties for 2023.

The authority intends to borrow $205,225 from each of the county governments next year, to make payments on a bond issue and bank loan the authority used to finance the cost of purchasing the reservoirs from the former Manufacturers Water Co. more than 20 years ago.

The authority has refinanced the debt twice since the reservoirs were purchased, Chairman James Greco said at last December’s authority meeting. The bonds are scheduled to be paid off in June of 2029 and the bank loan is to be paid off in June of 2034.

The loan amount for 2023 is slightly more the 2022 loan amount of $190,140, but it is still nearly $100,000 less from each county than the authority has borrowed in prior years, according to last year’s reported figures.

Dawson abstained from the vote to approve the agreement with Somerset County, and Cambria County Commissioner William “BJ” Smith abstained from the vote to approve the agreement with Cambria County.

The authority’s 2023 budget also includes a $28,233 grant from each county to pay on the authority’s outstanding PennVEST loans. This amount is nearly $20,000 less than the $47,550 contributed by each county in 2022 because one of those loans will be paid off as of Jan. 1.

Dawson also made a motion to revise the authority’s budgeted salary increase for employees to 3.5% instead of 5% as was listed on the 2023 general operating budget. The adjustment was approved by a 3-2 vote, with Dawson, Smith and Vice Chairman Steve Buncich voting in favor and Greco and board member Greg Elliott voting against.

“Three-and-a-half percent is an average percentage wage increase that I felt would be appropriate in today’s environment,” Dawson said after the board meeting.

This article originally appeared on The Daily American: CSA repairing Foustwell Tunnel in 2023